THE GROWTH in online retail in the UK was already well underway before the Covid-19 pandemic struck. Lockdown restrictions that were introduced only served to accelerate matters; internet sales as a share of total retail sales rising from 19.1% in February 2020 to a peak of 37.8% in January 2022. For all these fresh eCommerce opportunities, however, challenges still remain.
eCommerce in the UK 2022
One of the underlying challenges that small businesses are facing at present is the rolling back of the internet’s reliance. The end of restrictions and return to normality mean the exponential growth of online sales has been checked somewhat. In 2022, that proportion has dropped back down to around 25-26%.
Yet, it’s not all doom and gloom on this front. The figure has stabilised over the course of 2022. And it goes without saying that, even at more recent levels, eCommerce is accounting for more retail sales in the UK than pre-pandemic. For smaller businesses who invested in – or pivoted to – eCommerce in the last few years, the opportunities still exist.
The ever-present cybersecurity risks
As technology evolves, so do the tactics of people who seek to wreak havoc with individuals or businesses. Over a 12-month period, official data showed that 39% of UK businesses (or 38% of micro and small businesses) were the subject of a cyber attack. At best, dealing with such a situation is a nuisance and an inconvenience. At worst, however, the effect can be devastating.
The time and financial cost can be a real drain on the resources of any business – let alone any smaller firm that has to make every penny count. And that risk isn’t going anywhere.
Maintaining a strong brand presence
For all the eCommerce opportunities that exist, there’s a significant challenge for brands to get themselves noticed in a competitive marketplace. From brand recall to organic search rank, the ability to capture potential new customers is vital. Each user that visits a competitor website is a customer they could gain at your expense.
The challenge is amplified further if the market includes bigger brands with a stronger recall.
Creating a positive user experience
Once an eCommerce business gets the user onto their site, a poor user experience can flatten any chance of completing a sale. Users increasingly expect to have a smooth, convenient, and mobile-friendly experience when visiting a website. If your website fails to deliver on this, that next click by the user won’t be ‘add to cart’ – but back to the search engine.
Getting quality leads and conversions
For some online businesses, the trouble isn’t with attracting potential new customers. Nor is the user experience below par. But that doesn’t guarantee results. Success at bringing in new traffic to your site can also mean bringing in traffic that won’t deliver leads or conversion. Instead, you find yourself wading through unqualified and poor quality leads that don’t benefit your business.
To overcome this challenge, targeted marketing and remarketing can help bring the right users to your site. And, in doing so, it can boost your chances of converting prospects to customers.
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The spectre of economic recession
One other significant challenge facing businesses – not just eCommerce ones – is the prevailing economic situation. As consumers reduce the amount of money they spend, the battle to secure those precious shopper pounds will intensify. Operating as a business online will perhaps reduce the amount of stress you feel due to the lack of physical overheads, but it will still be a concern.
What recent times have proved, however, is that smaller businesses with an ability to adapt are in a stronger position for it. The same applies to the challenges that lay ahead too. By facing up to them, you can work out the solutions that best protect your interests. Such challenges will no doubt evolve too – so be ready to evolve with them in order to ensure your continued success.
